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Mashreq expects 30% revenue growth
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Dubai-based Mashreq bank expects its revenues to grow by more than 30 per cent in 2007 while the net profit is projected to rise by 25 to 30 per cent, its chief executive officer said. The bank’s revenues totalled $768 million (Dh2.82 billion) in 2006 with net profits of $427m. Mashreq bank’s profits for the first nine months of 2007 touched Dh1.35bn, recording a growth of 21 per cent over Dh1.11bn for the same period the year earlier. In an exclusive statement to Emirates Business, Abdul Aziz Al Ghurair, CEO of Mashreq bank, said the bank would open its first branch in Cairo, Egypt, by the end of April. He said the Egyptian Central Bank had given approval to appoint Mohammed Badra, a banker with considerable experience in Egypt and the Gulf countries, as Mashreq’s general manager in Egypt. The bank has also received approval from the Egyptian Central Bank to open more branches. Mashreq bank plans to open 10 branches by the end of the current year and 30 branches over the next three years in Egypt. Al Ghurair said arrangements have been finalised to open the other nine branches in different cities, including Cairo and Alexandria. He estimated that each branch will cost $500,000, while the number of employees working in Mashreq’s branches in Egypt is expected to go up to 700. Al Ghurair said the Egyptian economy is witnessing rapid growth. There were recently signs that the economy will be liberalised, with some important sectors being privatised. He said the most important challenge that Mashreq faces in Egypt is finding efficient and well-trained staff. He said another challenge for Mashreq is competition from national banks as Egyptians are known to favour local banks.
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